The state of Maine offers plenty of help for the first time home buyer, and has even stretched the definition of “first time” to help out some deserving citizens. Some of that help comes in the form of low fixed rates, some of it comes as special homeowners insurance packages, and some of it comes in the form of good-to-know information that will give homeowners a decided advantage in the market. MaineHousing also offers special programs that help veterans, including National Guard members, to locate and finance new homes in Maine.
What Is MaineHousing’s First Home Loan Program?
MaineHousing’s First Home Loan Program helps first-time home buyers by giving them a low fixed-rate mortgage, sometimes with low or even no down payment. The buyer can go with low points or even no points, and it’s totally up to the buyer to decide the right approach. First Home Loan mortgages include payment protection for unemployment, which works like this: If the borrower has kept up with payments, Maine HOPE (which stands for “HomeOwnership Protection for unemployment”) will make up to four monthly mortgage payments, including homeowners insurance and taxes. Those four payments become an interest-free mortgage lien, that the borrower receives when they pay off their mortgage or stop using the home as a primary residence.
There are a number of options to consider:
Points. The decision to pay no points or low points should be based on how long you plan to remain in the home. Paying discount points at closing will give you reduced interest rates.
Down payments. When combining a MaineHousing mortgage with a government guaranty (FHA/RD/ VA) or United Guaranty private mortgage insurance, little or no down payment is required.
Advantage. With the Advantage option, down payment and closing cost assistance can provide up to $3,500 toward closing costs. Applicants must take a hoMEworks-approved homebuyer education class to qualify.
Repairs/Improvements. With the Purchase Plus Improvement option, first time home buyers can finance the purchase of a home and pay for the repair or improvement of that home at the same time. Eligible buyers can get from $500 up to $35,000 toward those improvements.
Mobile homes. Mortgages for single- and double-wide manufactured homes can be obtained through MaineHousing. Purchase price is limited to $150,000, and the terms of the loan will be based on the age of the home.
How Is Eligibility Determined?
To qualify for MaineHousing’s First Home Loan Program, you must be a first-time homebuyer, or you must not have had an owning interest in your home within the past three years. There are household income limits, of course, but most Maine households will qualify. Some consideration will be made for the number of people within your household and where the home itself is located. This applies to new and existing single-family homes, condominiums, owner-occupied homes, two- and four-unit apartments, and mobile homes that have been built within the last 20 years, and are located on owned or leased land.
What Special Programs for Veterans Are Available?
MaineHousing offers two programs for eligible active duty and retired military home buyers: Salute, ME, which gives qualifying veterans an additional 0.25 percent off MaineHousing’s low 30-year fixed interest rate, and Salute Home Again, which gives the same 0.25 percent discount to veterans who have previously owned homes.
How Is Salute Home Again Eligibility Determined?
To be eligible for these special veterans programs, veterans must be
- Mainers who have remained on active duty or have been honorably discharged from military service
- Veterans, including National Guard members, who have served on active duty for at least 180 days, or within a war zone.
- First-time homebuyers or returning homebuyers whose home will be their primary residence.
- Veterans who meet income limits
- For homes that meet purchase-price limits
What Is hoMEworks Homebuyer Education?
To qualify for any of the MaineHousing programs listed above, prospective homeowners are required to take hoMEworks Homebuyer Education classes. The classes give prospective buyers essential and in-depth information about the home-buying process. People who have taken those classes have reported that they had gained confidence in speaking the language of the real estate world, and that they had confidence in the decisions they made along the way. Classes may be taken online, or in person at several locations throughout the state. People who have gone through both classes have agreed that one gets more information and more help by attending class in person.
The classroom version takes 10 hours to complete, and is taught by real estate industry professionals such as real estate agents, lenders, and home inspectors. The online version is offered through eHomeAmerica, and takes eight to 10 hours to complete. Online classes offer the prospective homebuyer the option of starting or stopping at any time. Note that the eHomeAmerica online course may not be acceptable to lenders or mortgage assistance programs that require the borrower to attend a “HUD approved” home buyer education class. Prospective home buyers should check with their lenders before signing up for a class.
For more information, visit www.mainehousing.org.
2 Point Highlight
MaineHousing’s First Home Loan Program helps first-time home buyers by giving them a low fixed-rate mortgage, sometimes with low or even no down payment.
With the Purchase Plus Improvement option, first time home buyers can finance the purchase of a home and pay for the repair or improvement of that home at the same time.
